Hard Money Loans in Hyattsville
Suppose you've run across this excellent deal on a fix and flip property in a terrific neighborhood, and you are either an experienced real estate investor or a newbie who wants to try out flipping homes. Most folks know that expert professional flippers, like Tarek and Christina El Moussa from HGTV's reality home flipping show, Fix or Flop, are able to make an average profit of $40,000 to $50,000 on their flips. Of course, you also realize that their great results are attributed to the fact that they are professionals, are proficient in hard money loans, they understand market trends really well and furthermore, they know how to work a public auction for getting an appropriate price. Having said that, you have likewise been brushing up your rehab and renovation skills, have got a licensed contractor ready to go and are positive that you will be able to do an impressive job on this home.
But where do you get the necessary funding for home flipping? A typical lending institution, like for example a bank, takes at least 1 to 2 months to consent to the financing and deliver the money. So if you happen to be expecting a fast closing, you must realize that this may cost you a couple of weeks, causing you to miss out on the opportunity.
On top of this, banks have already been tightening their lending standards as of late, which makes it difficult for someone to obtain an ordinary home loan if their credit situation is not perfect or he doesn't have a regular salaried profession. So does this mean you have no option, but to abandon your aspiration of getting into home flipping? Definitely not, given that you always have the Hyattsville hard money loan alternative.
A hard money home loan in Hyattsville offers what's considered crucial to many real estate deals — a quick closing of only a couple of weeks and more often than not less. And additionally, loan amounts can be made up to 70% loan-to-value of the "as is" house value, as established by a licensed appraiser. With the interest rates starting off near 10%, hard money real estate loans might seem, at first, to be more pricey in comparison with traditional bank financing. But in reality, the lending rate is not as relevant for these loans, given that they are not long-term loans. When it comes to short-term loans of a few years or even less, you should consider them just like you would other expenses for your project. And as soon as you have sold the property, recovering this expense is identical to recouping the expense for the bathroom improvements you performed.
In addition, even an individual with bad credit can still be eligible for a hard money mortgage. Rather than focusing primarily on the person's credit score or net income, Hyattsville hard money lenders, who can be a private company or an individual person, say yes to a loan after analyzing the property value, its marketability, its location, and the likelihood of recovering their money should they have to foreclose the loan. On top of this, if the borrower can demonstrate prior experience in equivalent real estate projects, can put down money towards the down payment, and the value of equivalent homes in the vicinity works in his favor, he has a very good shot of qualifying for a hard money real estate loan.
So any time you come across an outstanding and worthwhile flipping opportunity, be assured you will have a hard money lender in Hyattsville, willing to loan you the cash that you need. Fill out the contact form or give us a call and let's talk about your project.
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